In April this year, China's producer price index (PPI) for its ferrous metal smelting and rolling sector decreased by 1.1 percent year on year, 1.4 percentage points slower compared to the declining pace recorded in March, while edging up by 0.6 percent month on month, 0.3 percentage points faster compared to the rising pace recorded in March, reflecting the effectiveness of policy regulation measures, according to the data released by China's National Bureau of Statistics (NBS). In April, the ongoing crackdown on “involution-style” competition among steel producers continues to yield results, while the manufacturing equipment renewal policy has boosted the demand for steel.
Meanwhile, in the January-April period this year, China's PPI for its ferrous metal smelting and rolling sector decreased by 2.7 percent year on year, 0.5 percentage points slower than the decrease recorded in the January-March period.
In April, China's overall PPI increased by 2.8 percent year on year in April and by 1.7 percent month on month. Also in April, Chinese industrial producers' purchase prices rose by 3.5 percent year on year and by 2.1 percent compared to March.
In the first four months this year, China's overall PPI increased by 0.2 percent year on year, while Chinese industrial producers' purchase prices rose by 0.5 percent year on year.
The increase of PPI in the January-April period exhibited a highly concentrated structural characteristic, primarily driven by the energy, chemical, and non-ferrous metal industrial chains amid the impact of the war in the Middle East.
